Hospitality Boom Drives Record-Breaking Land Prices in Tourist Corridors

  • 4 weeks ago
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HelloLand Bank

India’s post-pandemic travel revival is fueling an unprecedented surge in land prices across key tourist corridors, as hotel developers, resort chains, and boutique hospitality brands scramble to secure prime real estate. With both domestic and international tourism returning to full strength, the demand for hospitality projects in high-footfall areas has led to record-breaking land transactions in scenic, coastal, and heritage-rich destinations. These price spikes are being seen not only in established hotspots but also in emerging leisure markets poised for rapid infrastructure and visitor growth.

Regions such as Goa, Rishikesh, Udaipur, Ooty, Coorg, and Alibaug are experiencing intense land competition, with per-acre prices doubling in some micro-markets over the past 12 to 18 months. Land with proximity to beaches, rivers, hill viewpoints, and protected forests is commanding the highest premiums, especially when zoned for commercial or tourism use. In addition, sites with access to newly built airports, coastal roads, and intercity expressways are seeing rapid appreciation as developers race to establish eco-resorts, wellness retreats, boutique villas, and luxury hotel chains tailored to the new-age traveler seeking experience-led stays.

State governments are fueling this boom through tourism-centric incentives, faster approvals for resort development, and relaxed land-use norms in designated tourism zones. Public-private partnerships and infrastructure upgrades under schemes like Swadesh Darshan, Dekho Apna Desh, and PM Gati Shakti are improving connectivity and investor confidence. As a result, hospitality land has become one of the hottest asset classes in India’s real estate spectrum, where location, access, and travel trends are converging to deliver high capital appreciation and robust operational income for landowners and hotel investors alike.

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